The National Assembly’s Social Affairs Committee has rejected a government proposal to lower apprentice wages while considering adjustments to exemptions from employer contributions. An article in the 2025 Social Security Financing Bill aimed to impose contributions on apprentice salaries over 50% of the minimum wage, potentially reducing their take-home pay by 50 to 100 euros monthly. The government faces criticism for taxing poorer apprentices rather than addressing substantial employer subsidies, amid ongoing concerns about the impact on young workers entering the job market.
The government has encountered yet another challenge. Following the recent decision to remove an article from the proposed 2025 Social Security Budget aimed at restructuring the exemptions for employer contributions, the National Assembly’s Social Affairs Committee has now rejected another governmental initiative: the proposal to cut apprentices’ wages. Article 7 of the Social Security Financing Bill (PLFSS) for 2025 seeks to subject apprentice salaries exceeding 50% of the minimum wage (around 900 euros gross per month) to the generalized social contribution (CSG) and the social debt repayment contribution (CRDS) after the 2% rise in the legal minimum wage effective November 1. This move would consequently diminish the net earnings of apprentices.
Currently, apprentices’ wages are the only type of labor income that is fully exempt from CSG and CRDS contributions. This exemption is viewed by the government as unjustified, arguing in the explanatory notes for Article 7 that “certain remuneration levels (for apprentices) are relatively significant.” However, this perspective is not widely shared among members of the Social Affairs Committee. Representatives from various political groups, including the Socialists, Liot, the Republican Right, La France Insoumise (LFI), and the presidential party Ensemble pour la République, expressed their dissent, stating, “Apprentices’ compensation is inherently low.” This collective opposition resulted in the adoption of amendments aimed at nullifying the government’s proposal during the committee session on October 23. While this vote holds symbolic significance, the confirmation of the amendment will be addressed when the PLFSS 2025 is reviewed in the National Assembly beginning October 28.
Possible Monthly Pay Reduction for Apprentices
Apprentices earn varying salaries based on age and educational level, potentially reaching up to 100% of the minimum wage, which is 1,766.92 euros gross per month currently and 1,801.80 euros starting November 1. In practice, however, apprentices may receive lower pay, such as 400, 800, or 1,200 euros monthly. Being subject to CSG and CRDS would effectively reduce their earnings by 50 to 100 euros monthly. Estelle Mercier from the Socialistes et apparentés emphasized the unfairness of this for young individuals beginning their careers, stating, “It is particularly unjust for those who are working, integrating into the workforce, and undergoing training.”
This governmental initiative faces additional backlash due to plans for potential cuts to the 6,000-euro hiring incentive for employers who recruit apprentices. The administration intends to implement a decree that could reduce this aid, aiming for savings of 1.2 billion euros. If realized, the incentive could be lowered to 4,500 euros for all apprenticeship levels across various business sizes. However, the government has yet to finalize its decision, leaving the future of this cut uncertain. Zahia Hamdane from LFI criticized the approach, stating, “We prefer to tax the poorest to avoid touching the massive aid granted to companies. The reality is that the rapid expansion of apprenticeships mainly serves to artificially inflate employment statistics.”
Compounding the issue, the presentation of the draft Social Security Budget also hinted at another potential reduction in apprentices’ net pay: the proposed lowering of the threshold at which they would be liable for employee contributions. Currently set at 79% of the minimum wage, this limit could be adjusted to 50% of the legal minimum wage, which would further impact apprentices’ take-home pay.